Bridgetown.
The international credit rating agency Standard & Poors(S&P) downgraded Barbados this afternoon to BB+/B from BBB-/A-3. In its assessement S&P said in their viewthe economic fundamentals of Barbados continue to weaken.
:"In our view, the economic fundamentals of Barbados continues to weaken, reflecting not only the external environment but also more pronounced competitiveness and other structural short coming we believe that the fiscal stance remain weak, as seen in the rising debut burden, off budget spending and outstanding contingent liabilities. As a result we have lowered our sovereign credit rating on Barbados to BB+/B from BBB-/A-3", S & P said.
They have assigned a recovery rating of '3' to Barbados foreign currency debut, which said S&P says reflects their assessment of meanful recovery of (50%-70) in the event of a sovereign default. According to S&P, the stable outlook reflect their view that at this lower rating, Barbados has some room to absorb possible mild fiscal deterioration and weak economic growth in the near term without affecting its credit worthiness.
T
